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Re: Global economic collapse for dummies.....

By: faul in ALEA | Recommend this post (0)
Wed, 06 Jun 12 5:15 PM | 69 view(s)
Boardmark this board | The Trust Matrix 		Msg. 08335 of 54959
(This msg. is a reply to 08333 by DigSpace)
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Hi Dig.........

Yes it's about 1 oz per person,much less in the form of
99.95% for investment purposes,& about 1/8th of an oz
of silver per person..........because silver is consumed while
gold is recycled.Birth/Death rate is around 1.2% & gold
production is about 2% growth per annum.........

Just like the fractional reserve scheme where the bank
takes your dollar of labour & turns it into a minimum
of 10 dollars for them to make money on,there's about
100 oz's of paper gold to every 1oz of physical.......so
really the price discovery depends on how much paper
gold they continue to print & how much FIAT.........so while
there is less than 1 oz of physical for everyone on this
planet,the banks could print 10,000oz of paper gold so
long as those that hold paper continue to believe it's as
good as the real thing!

There is no magic in gold...there is no magic in any
corrupt system where some are allowed to create
FIAT or gold from nothing......

Doma.


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The above is a reply to the following message:
Re: Global economic collapse for dummies.....
By: DigSpace in ALEA
Wed, 06 Jun 12 12:36 AM 		Msg. 08333 of 54959

This is an old memory, but I thought there was about an ounce of recovered gold on the planet per person, and as we make more people, we tend to find more gold.

This could be totally bollocks, but at an ounce a person, and at US$1500 an ounce there is some 9 trillion in gold out there.

Global GDP is something like $10kper person, (again just ballpark stuff) or some 60 trillion.

So, to switch to gold and to allow there to be enough gold to represent one year of global GDP, gold would need to appreciate by something like 10-fold.

Given that gold has real industrial applications, it would be presumably devastating to those industries.

Presumably folks would return to things like brass for wedding rings, and somehow in the end, because gold supposedly has real value, the world would somehow be better, more stable and so on.

I can't paint the path from here to there on that. It seems gold's value would become arbitrary, based on monetary needs (rationalizing economic output)... just a shiny fiat currency. Where is the magic in gold?

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